Currently, there are no known methods for assessing the risk in buying and/or purchasing a loan from a particular loan source.
There are systems out there for analyzing the risk with a particular loan such as U.S. Patent Application No. 2003/0093366 listing Halper et al. An inherent problem with Halper and similar systems is the reliance on public data, which may be too old to have use, or the age of the data is unknown, and the accuracy and integrity of the data can be questionable. The Halper system is a fraud filter for use to detect whether a particular loan is fraudulent as opposed to whether a lender has a particular profile that would indicate that it would originate or purchase loans, which were obtained through a misrepresentation.
Factors that one of ordinary skill in the art would believe to impact such an analysis provide little insight into the risk analysis at best, and most times may provide an inaccurate picture of the risk. Some of this is caused by misidentification and/or misclassification of information that is reported or available including the reason for repurchase.
Notwithstanding the usefulness of the above-described methods, a need still exists for a system and a method for rating a lender based at least upon the strength of a lender's controls and corresponding history of loan repurchases, as well as upon the lender profile and loan programs for that lender.